MR. TOIV: Good morning, everybody. We'd like to have General
McCaffrey come up and present some of the commercials that are part of
the new phase of the ad campaign that the President just talked about,
and talk a little bit more about it and answer your questions. General
Barry McCaffrey.

GENERAL MCCAFFREY: Let me, first of all, introduce Peggy
Conlin, from the Advertising Council; and Jim Burke I think probably
most of you have met -- Partnership For A Drug-Free America. The two of
them are heart and soul of the National Youth Media Anti-Drug Campaign.

There's two pieces to it, one of them is a five-year,
billion-dollar effort that was less than one percent of the federal
counter-drug budget. We'll try and talk to 90 percent of the American
people, four times a week, with a scientifically credible anti-drug
message. And Partnership For A Drug-Free America gets this work done
for us for free by a couple hundred advertising firms around the country
-- we pay production costs.

Now, at the same time, Congress mandated into law that we get
a minimum of 100 percent matching free access. The Ad Council, going
since 1942, public service announcements -- Peggy Conlin is now the
President -- has organized this, in the last year, 191,000 ads. And
they still have to go through our behavioral science expert panel, but
it benefits Mothers Against Drunk Driving, America's Promise, 100 Black
Men, a series of coalitions and NGOs who create their own work and then
the Ad Council sponsors it. It's been enormously successful -- they've
gotten 107 percent match in the year we've been doing that.

Now, what the President just announced was the start of the
fully integrated national campaign. It's one of the biggest things
we've ever done. It is going to be in 11 languages, starting in
September -- I mean, it's going to be in Chinese, Vietnamese, Korean,
Lakota, Ti-wa (phonetic) languages of Native Americans. We're going to
talk to young people and their adult mentors in a 102 different media
markets, with a message that is credible and that hopefully will help
shape their attitudes.

We're confident, from our Columbia University work, from Dr.
Alan Leshner at the National Institute of Drug Abuse, we're confident
that if you can shape youth attitudes, you change their drug-taking
behavior.

Why do we think that? Because we've done an extensive
evaluation of our phase one and we believe that the ads are seen, that
they are believed to be credible and that, to our astonishment, because
there should have been about a two-year lag time on this, that they're
actually starting to help change youth behavior. The numbers in the
last two years have actually begun to go down in almost every age group,
to include underage gateway behavior of alcohol use and tobacco.

Now, these are modest, although statistically significant,
gains. But I put that evaluation in front of you because we're
committed, in the fully integrated campaign, to using National Institute
of Drug Abuse to monitor what we're doing and see how it works so we can
modify the campaign as we go along.

A couple of other people I need to introduce, if you will,
stand up: Shona Seifert and Dan Merrick, from Ogilvey & Mather, this
huge, sophisticated advertising campaign -- they're doing our media
buying, they're doing the heavy lifting. And Bev Schwartz from
Fleischman Hillard, they're doing a lot of things. They're integrating
our public-private partnership; they're doing our Internet strategy.
We're very proud of our association with these two corporations and we
thank them for their leadership and their assistance.

You should have a packet. One of them outlines what you're
going to see in September, is the final, fully integrated campaign goes
public; and the other one is a series -- I think we've got a tape where
you'll see some of the television, radio, we've got some print ads that
you can look at and see how the material is going to look when we put it
public.

A lot of this message, although it's scientifically based,
depends on the credibility of the spokesperson. We've got to talk to
people in a language and in a manner that resonates with that community
group. We are enormously proud that Andy McDonald, a Gold Medal X Game
skateboarder, joined the President this morning because he's one of the
most famous faces in America with adolescents, who look to him as an
example of a superb athlete, of a committed, responsible young America
citizen, and someone who believes drugs would stand between he and his
goals. So that's who we had introduce the President. Arguably the most
effective speaker this morning was Andy McDonald. And, Andy, I thank
you for your participation.

What I think we ought to do is let me show you a tape and I
think it's got five video and three radio ads, just to give you sort of
an overview of what this will look like in September.

Go ahead and roll them.

(Videos are shown.)

GENERAL MCCAFFREY: If I can, why don't I just open the floor
to questions -- we'd be glad to respond to your own interests. Peggy
Conlin or Jim Burke or I or anyone.

Q General McCaffrey, we understand this is your third phase
and you have 11 different languages this time. Last time there was a
bit of criticism. You did a concerted effort before. There was a bit
of criticism about the media buys for the campaign. Could you talk to
us about how you've tried to fix that problem with the media buys and
what outlets you did, versus -- minorities versus mainstream? Because
you do have several commercials that are definitely targeted to urban
America.

GENERAL MCCAFFREY: Yes, well, one of the four pillars of the
campaign was multicultural approach. We knew you had to have a message
that resonates with you, age 9 to 18, regardless of who you are. And
so, from the start, although Ogilvey & Mather is the corporation that is
the quarterback of the media buy, they have 10 ethnic diversity
partners, and absolutely the best people in the business. And
Muse-Cordero-Chin , for example, an absolute first-rate African American
and other ethnic orientated firm, did that ad that sort of brings tears
to your eyes.

Now, what we're doing is we're looking at the target audience.
And I don't need to tell you, this is a changing marketplace, with cable
TV, with kids who are now on the Internet, so we're trying to be where
the young people are.

What I can tell you is that in phase two we did incredibly
well getting to our ethnic marketplace. So what we said our
self-announced goal -- and this is based on Jim Burke's Partnership For
A Drug-Free America work, to be honest -- we went into it saying we need
to talk to kids four times a week, with a 90-percent market penetration.

If you look at what we did, we talk about African American
kids; we got to them eight times a week with a 95 percent market
penetration. We got to Hispanic kids 4.8 with 93 percent, et cetera.
But you have to take different techniques. Now, if you look at how we
spend our money, that's caused a lot of anxiety. And what I said was,
Ogilvey & Mather, who do this for a living, need to be responsive to our
own evaluation. So Westat Corporation and others are going to see how
this media campaign proceeds.

But having said that, when you talk about targeting black
kids, we're spending $25 million. When you talk about targeting
Hispanic kids, we're spending $10 million. Now, part of that is, if you
want to get to Hispanic kids, that $10 million is for Spanish language
shows. And if you want to talk adult mentors, for example, in the
Chinese American community, you've got to go on Chinese language radio.
So we will continue to watch the issue. What I have pledged to the CBC
and the Hispanic Caucus and others is, we will reach the target audience
using tools that they're responding to. Thanks for that question.

Q -- print buys as well?

GENERAL MCCAFFREY: Say again?

Q A lot of print buys -- because I understand last time that
was the --

GENERAL MCCAFFREY: Well, there are print buys. We did
increase them. It's a good tool to get to opinion-shapers. But if you
want to talk to a lot of people, and you want to invest your money,
television and the Internet, as an example, are ways to get a huge bang
for your buck.

Q BET?

GENERAL MCCAFFREY: BET's got -- we're putting money into BET,
absolutely, yes. What I actually have them do, now -- when Partnership
for Drug-Free America brief me on a series of ads, they tell me who the
target audience is, and what age group. And the work is very
sophisticated. It's not obvious, necessarily, who you're talking to.
If you want to talk to white teenagers in the suburbs, you invest in
black radio stations because that's the music they're listening to.

Kids will move with the marketplace, on what appeals to them.
And what we're going to do is, we're going to follow them to make sure
that message is there and it's credible. Thanks very much for that
question.

Q General, you just came back from a trip to Colombia, and I
was wondering what the relations between your domestic and --

GENERAL MCCAFFREY: Could I see if there are any other
questions that relate to the media campaign? I will respond to your
question, it's an important one. But are there any other sort of
notions about the media campaign?

Q Yes, I have a question. There was a controversy recently on
Capitol Hill, a number of members of Congress said they'd like to see
this campaign expanded to cover alcohol. And I believe the statistics
are that six times more young people die in alcohol-related incidents
than in drug-related incidents. Could you explain what your office's
view is on that subject, and what the administration is going to do to
get an anti-alcohol abuse message out to young people?

GENERAL MCCAFFREY: Well, there's no question that, although
alcohol is legal, socially acceptable and mildly addictive -- having
said all that, it's the single worst drug abuse problem in the country,
hands down. You know, pick your statistics. I say it kills 100,000
people a year and costs American society $150 billion a year. If you
talk to a cop, it's the principal cause of violent behavior, of
burglary, et cetera. And clearly it's the most abused drug by
adolescents, it's illegal behavior for them, and we ought to be
concerned.

And work of people like the National Institute of Drug Abuse
does indicate that abuse of alcohol and cigarette smoking is part of
this constellation of gateway drug using behavior. So we have to
confront the issue.

Peggy Conlin, the Ad Council, have put -- if I remember the
number -- some 7,000 anti-alcohol ads have been on TV in the last year.
We started the biggest underage drinking anti-alcohol abuse campaign
we've seen so far. And Mothers Against Drunk Driving got their reel and
it's out there in the media right now. And it's being played at the
right times. So we'll follow it very closely.

Having said that, it's also clear, from looking at the kind of
enormous 10 years of experience of Partnership For A Drug-Free America
has that if you want to counter that drug of abuse, you have to have a
very different strategy than going against methamphetamine. It is not
true that we're equating, your dad's 40, he's having two beers watching
football -- we're not equating that behavior with dad snorting heroin.
So we've got to make sure that if we're going to go to underage drinking
strategies, that we know what we're talking about before we do it.

Now, the second thing is, you don't get something for nothing.
If we want to go after underage alcohol abuse with a paid campaign, then
we need to pay for it. And I think Jim Burke and I would argue we're
right on the margin right now with the amount of money we're using.
We're out in the marketplace with $2 billion worth of beer ads, and in a
marketplace with billions of dollars worth of cigarette advertisements.
So I think it's a different approach, and I think the administration
says, we're fully supportive on the substance of the argument, but let's
make sure we know what we're doing.

Q So you don't believe that within the $195 million allocated
each year, there's any room there for paid anti-alcohol abuse?

GENERAL MCCAFFREY: No, I don't, to be honest. And I think
I've got to be cautious to not confuse the market with this message.
But having said that, the Ad Council is clearly supportive of America's
Promise, Mothers Against Drunk Driving, 100 Black Men, and a lot of
these messages you'll see are on other drug-related behavior.

Thanks for that question. Yes, go ahead.

Q The first commercial you showed, well, one of the first
commercials you showed, it had something to do with -- what is it -- the
midnight basketball clinics or a basketball clinic. Is that truly the
answer for the dominant audience that you're trying to hit, the Hispanic
and African American community?

GENERAL MCCAFFREY: Well, I think what the research seems to
show -- and, by the way, all these ads go through a very painful process
of being evaluated by our behavioral science expert panel -- I think
what most of the evidence seems to show is that if you want kids to not
use drugs, from the age -- from kindergarten on, but particularly this
campaign, 9-18, they have to have a series of credible messages by
people who they trust that say, don't use drugs. So this is less than
one percent of the counter-drug effort.

The heavy hitting effort is mom and dad, homeroom teacher,
pediatrician, faith leadership, et cetera. And when you go to that
community and say how do you keep kids off drugs, only one component of
it tells them about the harm of drugs; most of it talks about being
involved, mentored activity, do kids have options between 3:00 p.m. and
7:00 p.m. -- which is why you hear me talking about the Boys and Girls
Clubs, the YMCA, et cetera. It's not so much an anti-drug message as
giving young people options.

And I don't think there's any question that the Scouting
movement, basketball clinic, junior ROTC -- General Powell was in the
press yesterday with standing solidly behind junior ROTC -- those are
the factors that keep kids from using drugs.

And, by the way, if you look at the clusters of human
behavior, it also works against teen pregnancy, violent behavior --
you're talking about having kids grow up with the right attitudes.

Q Do we have statistical evidence that organized sporting
activities do, in fact, prevent drug abuse?

GENERAL MCCAFFREY: What we've got is a lot of very good
material out of the University of Michigan, UCLA, Johns Hopkins,
University of Pennsylvania Medical College, Harvard University, a lot of
it funded by NIDA. NIDA basically supports the global research on it.

I think the more you get specific -- part of the problem of
the DARE program has been people looking at a 5th and 6th grade youth
intervention school-based, and then going to 12th graders and asking why
DARE failed to reduce their drug use rates in the 12th grade. So
pulling out a single variable in a young person's development is nearly
impossible. What we do believe -- for example, DARE is one of the most
effective drug prevention programs, in my view, in the world. It's
huge, it's 26 million kids; but it's just 5th and 6th graders primarily.
It's only a school-based program and if the rest of it isn't there, if
there isn't a coherent anti-drug message, it won't work.

But I think, arguably, most of us believe -- that's why we
wanted Andy McDonald to be one of our spokesmen; I think he represents
what 14-year-olds would like to be like. As a matter of fact, the
President and I were sort of envious of him, too. (Laughter.) I think
sports programs and mentored after-school activities and Saturdays and
summers and, you know, if mom and dad are going to work, then who's
going to nurture our children. And that's a strong, anti-drug component
to that concern.

What other thoughts? Okay, yes, ma'am.

Q I was wondering whether you think you can be successful on
your domestic campaign if you cannot control the supply. I mean, how do
you relate to the supply with the demand and here comes those --

GENERAL MCCAFFREY: Well, the supply of drugs we've got to
operate again. There's no question. And I might remind audiences, our
data on this domestically is sort of soft. A lot of our drugs are
domestically produced. We're making, possibly, half the methamphetamine
we consume here in the United States. The two biggest
methamphetamine-producing countries that threaten America are Mexico and
California. Those are the places that those drugs come from.

But we also see MDMA -- Ecstasy -- is being produced in the
Netherlands, and coming to the East Coast of the United States from
there. And we're seeing other chemically manufactured psychoactive
drugs -- PCP, Rohypnol, GHB -- are all coming on to the domestic arena.

We also say -- if you want to talk about the worst drug abuse
problem in America, it's a 12-year-old smoking pot on weekends. Because
when we look at the statistical correlations, you have this huge
increase, statistically, in the probability the kid's going to have a
compulsive drug use problem later on in life. And that high-THC pot is
grown primarily in the United States or Canada.

Now, having said that, cocaine -- we made spectacular progress
in the last three years. It's almost hard to believe, for a person like
me, with my background. We cut coca production in Peru by 56 percent.
That's pretty good data, that's satellite photography. We cut coca
production in Bolivia by 22 percent. There was actually a net reduction
in cocaine available for consumption in the last two years.

Poor Colombia doubled coca production in three years. It is
outrageous, the levels of money and violence that are being directed at
Colombian democratic institutions. The police, the Army, the judicial
system, mayors -- if you're honest and you're trying to protect
Colombian democratic institutions, you're in trouble. So if President
Pastrana, you know, is trying to confront the drug issues, trying to
confront a peace process, he's got an economy with 20 percent
unemployment -- Colombia is in trouble. And they're important to us --
"us" meaning regional actors.

I think at some point Secretary Albright and Attorney General
Janet Reno and Secretary Cohen and all of us involved in this will have
to reevaluate a dynamic situation that's going in the wrong direction in
Colombia. It's an emergency situation.

Q When you say reevaluate, what kind of reevaluation, how
deeply do you want to --

GENERAL MCCAFFREY: Well, I think, basically, many of us
believe we have to support the peace process, we have to support the
economy, we have to support Colombian efforts to separate the money from
the FARC, the ELN and the paramilitary forces. That's where this
corrosive impact -- you know, pick an Intel study, one of them is at
$215 million a year, the others run up to $600 million a year. With
that level of money, you know, the FARC and the ELN, the paramilitary,
has been there for the last 10 years, but their money came from
extortion, kidnapping, murders, bank robberies, blowing up the pipeline
system. You throw in $600 million in drug money, it changes the
equation.

The U.S., as part of the regional partnership, ought to
provide training. We ought to provide intelligence, where appropriate,
as long as it's focused on the counter-drug mission; equipment, where
appropriate; and political support, in a regional sense, for the peace
process. And I think that's what we'll try and do.

Q Can you comment on comments last week, that he does not
consider the foreign narco-guerrilla group, with U.S. aid --

GENERAL MCCAFFREY: Well, let me -- I want to get to you as
the last question. Let me just say, I refuse to discuss the names.
What is clearly the case is, you've got 25,000 people with mortars, lots
of automatic weapons, land mines, and AKs. They are -- last night they
besieged a police station, which finally fell, for three days, and they
got in there and killed everybody or led them off in captivity.

And the problem is the money. The money is providing enormous
amounts of lethal weaponry, of aircraft, of legal talent, of corruption,
for the system. That's the problem. It's drug-related money; it's tied
directly to coca production and heroin.

And I think getting involved in a debate over whether we call
them narco-guerrillas or whatever is irrelevant to me. I think the
police, the army, and judges and prosecutors are terrified that as many
of 2,000 of these armed insurgents will show up in a nationwide,
coordinated offensive against democratic institutions. That's a
problem. Yes, ma'am?

Q Thank you. Just to follow up with that, what seems to
concern President Pastrana is that the impression in the world could be
that he's negotiated with drug traffickers for the peace process, and
that's what worries him when you use the term "narco-guerrillas."

GENERAL MCCAFFREY: Yes. I wouldn't want to speak to that.
There's no question in my mind that the peace process strategy has to
come from Colombian leadership. They'll be held accountable by history.
And what we need to do is listen very carefully, and support his efforts
in ways that are appropriate.

Q The Mexican government already approve it, but last week the
Mexican judge rejected the extradition of one of the -- what do you
think, General, could affect this through the bi-national fight against
drugs?

GENERAL MCCAFFREY: Well, you know, extradition cases are
something for the two Attorneys General, Madraso and Janet Reno, to work
in accordance with national law. These aren't policy questions, they're
legal questions.

Having said that, all of us are persuaded -- and I say all of
us, particularly the OAS -- that we're all signatories of the 1988
Vienna Convention. And we are all committed to not allowing drug
criminals to find refuge in another country. So I think, over time,
that's the way both Mexico and U.S. authorities feel about it.
Extradition and seizure of money and assets are the two tools that these
drug criminals fear the most.